Hi,
I have searched a lot on my query but this is still confusing, Please help me to know if there is some provision in income tax for this.
Query 1
Employee working in a company leaves the Job from Company without giving the Notice. So the Company deducts the Notice Payment at the the time of full & final Settlement of the employee.
Whether Employee would be able to take deduction of Notice payment from his Salary Income. If not then can an employee deduct this amount from his earnings in that organisation while filing tax return.
Query 2
The Second Company Reimburses to the Employee the Notice Pay Paid by the employee to the previous company. Whether the recovery of Notice Pay made my employee from the current Employer would be considered for taxation for computation of Income of Employee.
I feel I alreay know the answer of my 2nd query "Yes" but I am ony putting this query because there will be a double tax on the same amount.
Secondly employee earnings will be increased unnecessay & he will be in higher tax bracket due to this amount.
Kindly quote with relevant Text, judgement or Notification if available
CAclubindia
